Betfred has announced plans to shut down all 1,287 of its betting shops if Rachel Reeves, the current Shadow Chancellor, implements a tax increase on the gambling industry in the upcoming budget. This potential tax increase, which could reach £3.2 billion, is being discussed to address a projected £30 billion shortfall in public finances.
According to Betfred, such a tax hike would threaten 7,500 jobs associated with its shops. Fred Done, the co-founder and chairman, noted that an increase in the tax rate to around 35% or 40% would render the business unprofitable, compelling them to close. Betfred’s Chief Executive, Joanne Whittaker, expressed concerns that this tax increase could eliminate the retail business altogether, stating that she is not being alarmist in her views.
The gambling sector has been increasingly active in lobbying against potential tax increases, as speculations arise that Reeves might raise taxes on sports betting firms from 15% to 30%, and online slots from 20% to 50%. Former Prime Minister Gordon Brown has advocated for higher taxes, suggesting the revenue could be utilized to reduce child poverty. The Institute for Public Policy Research estimates an increase could generate £3.2 billion in additional revenue.
Additionally, other betting operators have voiced similar concerns. William Hill indicated it could close up to 200 shops, affecting approximately 1,500 jobs. Entain, the parent company of Ladbrokes and Coral, has also cautioned that increased taxes might lead to shop closures and possibly divert investment abroad.
In response to the statements from Betfred, a Treasury spokesperson declined to comment on speculation regarding future tax policy changes but mentioned ongoing consultations related to online betting regulations. Betfred recently reported an operating profit of £500,000 on £900,000 in revenues for its latest earnings, following a £3.25 million fine from the Gambling Commission for regulatory failures.
Source: https://www.theguardian.com/society/2025/oct/19/betfred-gambling-tax-rise-shut-uk-shops